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S&P Year Return By Sectors: Equal Weight Or Market Weight?

 

 

  Materials Energy Financial Industrial Technology Cons Staples Utilities Health Care Consumer Desc S&P 500 Equal Weight Portfolio Spread
  XLB XLE XLF XLI XLK XLP XLU XLV XLY SPY    
2004 11.390% 31.833% 8.532% 16.106% 3.582% 5.969% 19.374% 0.133% 12.067% 8.940% 12.110% -3.170%
2005 1.850% 38.519% 3.734% 1.126% -0.995% 0.910% 12.711% 5.068% -7.481% 3.011% 6.160% -3.149%
2006 14.960% 16.537% 16.009% 11.426% 11.292% 12.151% 16.980% 5.580% 17.489% 13.742% 13.603% 0.139%
2007 19.793% 35.340% -21.257% 11.854% 14.617% 10.260% 15.278% 5.434% -14.755% 3.241% 8.507% -5.266%
2008 -45.468% -39.798% -56.723% -40.194% -42.198% -17.118% -31.420% -24.809% -34.037% -38.281% -36.863% -1.418%
2009 45.075% 19.343% 15.016% 18.659% 48.799% 10.892% 6.855% 17.024% 38.016% 23.493% 24.409% -0.916%
2010 16.429% 19.716% 10.764% 25.477% 9.856% 10.729% 1.032% 1.384% 25.663% 12.841% 13.450% -0.609%
2011 -12.783% 1.289% -18.495% -3.212% 1.032% 10.850% 14.805% 10.127% 4.304% -0.199% 0.880% -1.078%
2012 12.060% 3.313% 26.077% 12.296% 13.360% 7.418% -2.945% 14.963% 21.576% 13.474% 12.013% 1.461%
2013 22.696% 22.739% 32.703% 37.071% 23.085% 23.066% 8.532% 39.091% 40.327% 29.078% 27.701% 1.377%
Click to enlarge

Above is a chart of all sector proxies compared to how S&P 500 did over the past 10 years.

2013 is the best performing since 2003 followed up 2009 (after the world ended).

Over the past 2 years an equal weight portfolio have been underperforming against the weighted index S&P. The last time this happened was 2006, which was near the peak.